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Direct Materials and Direct Labor Variance Analysis Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet
Direct Materials and Direct Labor Variance Analysis Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour Standard labor time per faucet Standard number of of zinc Standard price per lb of sinc Actual price per of Actual lbs of zinc used during the week Number of faucets produced during the week Actual wage per hour Actual hours per week $18.00 12 min 0.00 $1.25 11.40 10,200 12,000 $18.75 2,160 hrs. Required: a. Determine the standard cost per unit for direct materials and direct labor. Round your answers to the nearest cent. Direct materials standard cost per faucet Direct labor standard cost per face Total cost per faucet b. Determine the price variance, quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Price variance Quantity variance Total direct materials cost variance c. Determine the rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Rate variance Time variance Total direct labor cost variance
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